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In a world that is getting more complex, how can leaders navigate the constant changes? Managing our responses and developing our thinking and learning is integral to overcoming these challenges, says Patrick Gallen.We live in a time when change and disruption are constant and being able to navigate change is an indispensable leadership trait.There is a fundamental difference between seeing the challenges posed by change as one of navigating the complicated versus navigating the complex.Complicated challenges may be demanding but, with enough information, we can leverage experience and expertise, observe patterns of cause and effect, apply rules and processes and then solve them. This approach is probably no different from the many challenges you face as an accountant in business or practice. As one of my old bosses used to say, we often over-complicate business problems and then must simplify things to solve them.Complexity, on the other hand, should be navigated differently, because complex systems and environments are made up of a mosaic of diverse yet interdependent elements that interact in unexpected ways. When we look at mechanics and engineering, we find highly complicated systems, like a jet engine.  When we look at nature, we can see highly complex systems, like a coral reef or a natural woodland.Some of our work may be complicated, but we do that work in a complex environment.Complex systems do not always follow patterns, and so past behaviour of a complex system may not predict its future behaviour. In a complex system, there is no centre or top from which to direct.  Empowered and self-directed teams ideally can resolve challenges in different parts of a complex system, almost akin to what the various university and pharma teams are doing around the world in the search for a vaccine for COVID-19. When you look at the biggest change challenges you are facing in business or practice, do they resemble the complicated or the complex?  We know that we cannot exercise complete control in a complex world – the environment is always changing, and we cannot lead people back to the way things were before. We can, however, manage our own response, develop our own thinking, and learn. Under stress, it can be tempting to fall back on our experience and expertise – to get consumed with the details and to narrow our focus.  Leading in a complex system requires us to take a wider view of our firms, our roles, our service lines and our teams, and to see them as part of a much bigger system.  This then has implications for the way we lead as a profession and as accountants, in whatever field we operate.Patrick Gallen is a Partner in People and Change Consulting in Grant Thornton.

Sep 18, 2020
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2020 has been difficult for everyone. Business and personal plans have gone awry and we're constantly readjusting to accommodate everything. Moira Dunne offers some tips to reset and refocus for the end of the year.September is a great time to reset and refocus after the summer months. With schools reopening, it is a chance to draw breath and set priorities for the last four months of the year. This year, we need to reset more than ever. 2020 has been a time of huge change and uncertainty due to the COVID-19 pandemic. Business plans created in January were suddenly paused in March. Day-to-day operations stopped for many businesses. And, as companies pivoted to survive, plans from January may be irrelevant in Q4. Here are some tips to reset and refocus for the end of the year.Even though we are still living with COVID-19, this September brings hope as we see the reopening of schools around the world. The virus is still here, but we are all getting on with our lives and our business. How great would it feel to achieve some important goals and finish your year on a high?1. Reset your prioritiesStart by looking at the goals you set in January and assess what has been completed and what needs to be added. Identify the most important things you want to achieve by the end of 2020. Then ask the following questions:What are the goals?What work needs to be done to achieve those goals?Is help or input required from anyone else?2. Make a planHaving a plan helps you achieve more as it provides structure, focus and motivation. To figure out the work to be done, it helps to break large goals into smaller sub-goals. Then brainstorm each sub-goal to identify the tasks or actions required.Using a flipchart or whiteboard really helps the brainstorming process as space frees up your mind. If you work with others, you can arrange an online session over Zoom or Teams and use the whiteboarding feature to help spark ideas.Once you have a list of tasks, start looking at the following:What needs to be done when?Do some tasks depend on the completion of others?What are the milestones to be achieved along the way?Then transfer all the tasks into a planner. 3. Be realisticYou are probably already busy, so be realistic about how much time you have. It is better to under-plan than over-plan. Start small, complete some tasks to achieve a sub-goal. This will motivate you to keep going.Build in some contingency time, some “slippage” for the unexpected. Because if 2020 has taught us anything, we know that we need to expect the unexpected!4. Track your progressAs you work through your tasks, track your progress by capturing the date each one is completed. If you miss a target date, readjust any remaining dates that may be affected.Rework the plan if you find you are not getting enough time to work on your goals. Extend your timeline if necessary.5. CelebrateIf you achieve your goal, then you will want to celebrate. If you reach the end of Q4 without completing all the work, you still have a plan and you know exactly what needs to be done in 2021.And by following this process, you have also gained some valuable project management skills. What an achievement in these uncertain times!Moira Dunne is Founder of beproductive.ie.

Sep 18, 2020
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What is the best way to handle post-COVID recovery? Leaders should see the recovery process as a spectrum of options, argues Valerie Daunt, and adapt accordingly.As a result of the COVID-19 pandemic, an estimated 2.7 billion people, or more than four out of five workers in the global workforce, have been affected by lockdowns and stay-at-home measures. Business and government leaders have been challenged to both respond to the crisis quickly and rethink their workforce strategies in real-time.It is important to realise that recovery won’t be static. It will not occur on a specific date. COVID-19 is unlikely to end suddenly given the lack of available therapeutics and the uncertain prospects and timing of a vaccine.Most organisations’ priority has been crisis response and emphasising health, safety, essential services, and the virtualisation of work and education. Now, as organisations begin to emerge from this response phase, leaders are focusing on the next set of challenges as they plan for recovery. There are three phases that leaders will likely face:Respond: How an organisation deals with the present situation and manages continuity Recover: How an organisation learns and emerges stronger Thrive: How an organisation prepares for and shapes the “new normal”Many organisations are planning for multiple scenarios and time horizons as they shift from crisis response to recovery. Many are also planning for the possibility of multiple waves of the pandemic and its continuing global and uneven footprint. As a result, we expect it will be a gradual transition from the respond phase to a new reality. Organisations must prepare for different outcomes of the pandemic – mild, harsh, or severe – and recognise that the recovery should be adaptable to different situations within different countries and industries worldwide.To do this, it helps to think of this recovery process as a spectrum of options. Some organisations are hiring or expanding and others contracting. Some may bring more employees back to the workplace, while others are still working remotely, perhaps permanently. Other organisations, especially those that expanded during the crisis, may reduce their workforce or adapt to new environments. Leaders should ask how they will integrate additional workers in the future, what services might be added or changed as a result, and what other operations may be maintained in a remote capacity. The answers to these types of questions will help organisations redefine their workforces and set the direction to thrive in the aftermath of the pandemic. It is not essential that leaders have a detailed blueprint of the new working landscape at this stage, but they should start to actively envision it and work toward it. In sharing our insights on how to approach workforce recovery strategies, business leaders should begin with a sense of priorities and direction for their future. The future of any organisation’s DNA, and critical guideposts for workforce recovery, should include its direction on organisational:Purpose: integrating the well-being and contributions of individuals in the organisation’s mission and work; Potential: for what can be achieved by individuals and teams; and Perspective: with a focus on moving boldly into the future.It’s not simply a return to old ways of doing business. The pandemic has created an imperative and an opportunity for organisations to reengage with the workforce and reinvent their workplaces. The biggest challenge organisations will likely face in recovery is the tension between preparing for a return to previous activities and routines – getting back to work – while also embracing a new reality – rethinking work. While many workforces have demonstrated resiliency in the face of crisis, it is important to remember that transformative change can be difficult and unsettling for many workers. While some may prefer working from home, others may be uncomfortable or unproductive outside of traditional work settings. How leaders accommodate and balance these divergent expectations will help define the future of trust in their organisation. Despite the uncertainty, one thing remains clear: customers, workers, suppliers, and other partners are watching. How organisations handle the recovery may define their brands with both their workforce and their customers, establish their reputations for years to come, determine their future competitiveness, and ultimately define whether they are truly operating as a social enterprise.Valarie Daunt is a Partner in Consulting in Deloitte.

Sep 18, 2020
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Cyberattacks have always been around, but recently they've been on the rise, especially when it comes to third-parties. What is the best way to safeguard your company against these risks? Pat Moran gives five practical steps on the best way to manage third-party cyber-security plans.Cyberattacks and data breaches are rarely out of the news, and when they do occur, they have wide-ranging impacts. In response to an ever-evolving cyberthreat landscape, many Irish firms have made significant investments to strengthen their cybersecurity capabilities. I’ve seen clients deploying new technologies, developing new capabilities, and implementing new security processes, all to increase the cyber-resilience of the organisation.However, focusing on what's inside your company is only part of the challenge. Any firm's security posture is only as strong as its weakest link. And very often, the weakest link exists outside your organisation.While it's not a new concept, more and more firms are engaging with third parties to reduce costs, enhance performance or avail of a specific skill set that they don't have. The term 'third party' can be used interchangeably with 'vendor', 'supplier', 'partner' or 'outsourced provider'. Regardless, they mean the same thing: an increased risk of cyberattacks for your organisation.The COVID-19 crisis has only reinforced how dependent most organisations are on an interconnected ecosystem of third parties to run their business. We've seen firms across all sectors struggling to get visibility on the resilience of their supply chain to ensure that the lights can be kept on. Suppliers are facing the same challenges of getting their workforce connected securely, adhering to security policies and maintaining a culture of cybersecurity awareness. All of this is against the backdrop of a heightened threat landscape. Opportunistic cyber-thieves are looking to take advantage of the uncertainty created by the crisis.When you're operating in an interconnected environment with third parties, the attack surface is expanded for cybercriminals to launch an attack.You can outsource almost everything but accountabilityPwC’s Global Economic Crime and Fraud Survey 2020 highlights that one in five respondents identified vendors and suppliers as the source of their most disruptive external fraud.  Half of the respondents lacked a mature third-party risk management programme and 21% had none at all. This highlights the size of the challenge faced by firms. And when a third party has an incident that impacts the security of your customers' data or impacts your ability to deliver a service, your customers don't see the distinction. You can't outsource accountability.To compound the matter further, all of the above is happening in the face of the pressures of reducing costs and improving efficiency, along with increased regulatory expectations.To navigate some of the above challenges, below are some practical steps your organisation can establish to manage the risk of cyberattacks caused by engaging with third parties.1. Establish your operating modelDeveloping your operating model and framework is the foundation of effective third-party risk management. The operating model should outline the governance and reporting requirements over your third parties, how to determine the criticality of each third party, and what technology can be leveraged. For mature or regulated entities, a centralised program likely already exists, but the security team should be active participants. For less mature organisations, the security team might be the driver.2. Identify your inventoryCreating a complete and accurate inventory of your third parties is a prerequisite for effective risk management of your supply chain, including your fourth and fifth parties (also referred to as chain outsourcing).3. Plan before you engageBefore you bring a prospective third party on board, invest time in understanding their security posture. Do they meet your minimum security expectations and standards? If not, do they have other mitigating plans or processes that will give your organisation more comfort?Not all products or services lend themselves to outsourcing, so make sure to develop a robust planning process, where assumptions can be challenged, to ensure that outsourcing or engaging a third party is not outside the risk tolerance of the firm. Security requirements should be baked into contracts and service level agreements.4. Monitor, monitor, and then monitor some moreThe most time- and resource-consuming activity is typically your ongoing monitoring and governance. The security team should be included in weekly or monthly operational meetings for critical third parties, and risk assessments should be performed at least once a year for all your third parties. Tooling and ratings services are now common on the market to support this.5. Exit gracefullyWith all the right intentions and robust processes in place, surprises still happen. Be prepared with a backup plan if services cannot be provided by a third party, or if you need to exit the arrangement with little notice.Pat Moran is a Partner in PwC.

Sep 11, 2020
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The impact of COVID-19 has left many businesses across the Irish economy vulnerable and uncertain about their future. Tom O’Brien and Hilary Larkin say this may be the ‘calm before the storm’.We are seeing companies who are experiencing a decline in activity levels and have been sustaining themselves through this period by availing of the various supports which have been in place since the onset of the virus, such as the deferral of tax liabilities, bank forbearance measures, wage subsidies and rates freezes.These measures have greatly assisted many companies, but it is what happens when they are ultimately removed that is worrying. Many businesses are accumulating significant liabilities over this period and when these supports are removed and businesses have to stand on their own feet again, there will be capital difficulties and liquidity issues.Looking into examinershipDespite the negative outlook, there are options for those in financial distress. Given the prevailing trading conditions and the nature of the liquidity issues which will face many companies, examinership may be an appropriate restructuring option to consider. There will likely be an increase in the number of examinerships over the coming months and into next year as companies seek to come to terms with the new normal and address pent up liquidity issues. The COVID-19 situation may also have highlighted other areas that can be actioned as part of the examinership process, such as property arrangements that are now onerous or surplus to requirement.There are many advantages to the examinership process such as the company continuing to trade, jobs being maintained and preserved, and creditors faring better than they would if the company were placed into liquidation. It is, in many cases, a positive outcome for everyone concerned.Examinership is not only an option for larger companies. Companies that meet the definition of a small company are capable of availing of examinership through the Circuit Court. This process has not been availed of as widely as was expected when it was first introduced – maybe due to lack of awareness or perhaps a perceived stigma around the process – but, given the economic forecast, smaller companies will be more likely to avail of it going forward. LiquidationWhile many eligible companies will go down the examinership route and emerge ‘at the far side’ completely restructured and with appropriate working capital and funding to sustain themselves into the future, there will inevitably be others that are not viable and may have to look at liquidation. Examinership is not suitable for all businesses as some will be beyond saving. In these circumstances, it is important that directors and business owners move in a timely manner to protect all stakeholders – employees, creditors, banks, and the directors themselves.From a governance perspective, directors must be able to demonstrate that they have acted responsibly, showing that they have properly assessed the options open to them including taking independent legal and financial advice, formally recording meetings of directors and management and being careful not to expose creditors to further losses in the period preceding the liquidation. Obviously, great care should be taken with any payments from the business to ensure that issues of preferment do not arise.This is all very important as in the final analysis, the liquidator is required to review the conduct of the directors over the period leading up to the liquidation and report to the ODCE on this. Directors should be able to demonstrate that their conduct was responsible and appropriate in the circumstances.Stay positiveDespite all the negativity surrounding financial distress, it is also important to be positive and take the right steps. Banks have been very supportive and are willing to try and assist customers to restructure and get through this period. Companies should be encouraged to seek independent and competent advice as soon as possible. Don’t bury your head in the sand – talk to your bank in a proactive manner, and don’t leave things until you are really under pressure.Tom O’Brien is a Partner and Head of Advisory Services in Mazars.Hilary Larkin is a Partner in Financial Advisory in Mazars.

Sep 11, 2020
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We all know a financial storm is headed our way, but how do we cope when it does hit us? Graham Reid gives us twelve steps that can be taken to navigate the perils of post-COVID economic recovery.After the storm comes rebuilding. And there’s a lot to do. COVID-19 has profoundly affected the norms of business across every industry and geography. From new ways of going to work (or not), long-lasting shifts in customer psychology and behaviour, and radically transformed operational networks and business portfolios, the world in the second half of 2020 is very different from the start of the year, for better as well as for worse.The only thing that’s certain about the recovery is that there’s still a huge amount of uncertainty about what form and how long it will take, with different countries – even different regions within countries – continuing to be impacted in different ways, and no certain cure for COVID-19 yet in sight. What should the working world expect from the pandemic recovery period? How is it best achieved? Outlined below are steps organisations and individuals need to take, not just to get back up and running, but also to become stronger and more resilient in the process.1. Reimagine and transformThe world is slowly adapting to the impact and waking from the nightmare of COVID-19. But getting back up and running requires more than just business as usual. It’s a two-geared process, a balancing act between transitioning safely into a new working world and taking steps to engage in the transformation of working conditions and practices that COVID-19 has unleashed. 2. Address client anxietyThe behaviour and decisions of consumers are what keep the business world ticking. But COVID-19 has dealt a massive – and potentially permanent – blow to the way they interact with businesses. As just one example, 44% of global consumers indicated they would be more likely to do grocery shopping online as a result of the pandemic. Firms looking to survive will understand this and will adapt accordingly. 3. Rethink the workplaceSome businesses have been able to opt to continue remote working practices for the foreseeable future, but for many others, a swift return to work is vital to remain financially viable. To do this safely for their staff and customers, organisations need to prioritise cooperation, communication and accountability, and supplement with cutting-edge technologies and working processes, including crowdsourcing, risk apps and collaboration platforms. 4. Maximize your people’s potentialConcern for the wellbeing of your workforce isn’t just about a duty of care – it's a business imperative. Led by an integrated Human Resources response, rebuilding will mean effectively engaging with the workforce, understanding and reacting to employee expectations of the care provided by employers and the ability to match workforce capability to financial and risk considerations. 5. Identify legal issuesEven if the worst of the crisis may seem to be over, with interim regulatory measures still in place in much of the world, the full aftermath is yet to hit. As the world moves on from the peak of the crisis, from cancelled contracts to employee class actions, COVID-19 is likely to leave a range of legal turmoil in its wake. Modelling potential outcomes, identifying potential risks, and capturing relevant data is critical for businesses looking to weather an anticipated storm of litigation. 6. Learn lessons from those a few weeks aheadWhen re-opening, it can be instructive to look at what has happened during reopening elsewhere – both in other industries and markets. China was the first country affected, and at the beginning of May, it became one of the first to re-open. Here we can look at key lessons from its experience, from assessing supply chains to preparing for future virus spikes. 7. Adapt operations, increase resilienceEven before COVID-19, business was facing pressure to act more responsibly, and the crisis will only accelerate that. As we look to an uncertain recovery, likely to be more saw-toothed than smooth, the pandemic presents us with a chance as much as a challenge. With such a significant economic and social impact, radical changes in how we operate are not just possible, but necessary. This is a chance to segue from a growth economy to a value-based one, prioritising long-term value and resilience and the needs of multiple stakeholders over short-term growth. Flexibility has always been a business advantage, but it will now be critical to survival. 8. Forecast more effectivelyMaking smart financial decisions post-COVID-19 is critical and, in such a radically changed world, only companies with effective forecasting and scenario planning strategies can do so with any confidence. However, in a webcast survey by EY, only 9.2% of respondents were very confident in these areas. 9. Adapt to shifting expectationsFor good or ill, what consumers expect of companies is changing. As we move from crisis to whatever comes next, businesses need to be ready to adapt to changing customer attitudes and needs: reshaping their portfolios for new business realities, creating new and responsive digital customer journeys, and taking the right steps to ensure transparency moving forwards. 10. Identify the right divestmentsIn the wake of the 2008 financial crisis, firms proactive about reviewing and strategically divesting their portfolio outperformed their peers. The same may well prove true of the COVID-19 aftermath. 11. Encourage inward investment in your regionCOVID-19 hit Foreign Direct Investment (FDI) hard. While 23% of investors surveyed indicated an intention to delay investment plans entirely, 51% expected minor delays in FDI plans. 12. Stabilise the economyReassuring and supporting individual customers in the immediate crisis is one thing, and something all businesses can work toward. But banks will have a particularly important role to play in the longer-term, post-crisis stabilisation of the global economy. Businesses will need to build close relationships with their banks to manage the inevitable risks of an uncertain environment and secure ongoing access to the capital that will be essential for their long-term recovery and growth.Graham Reid is Head of Markets in EY Ireland.

Sep 11, 2020